A new credit facility of €100 million granted to BOAD by AFD
This new credit facility adds to the financial and technical partnership existing between the two institutions for nearly 43 years and will help:
- Consolidate BOAD’s concessional lending to projects in its member countries.
- Set up a financial guidance function. With AFD’s financial assistance, a number of projects have been implemented since September 2013 by BOAD in supporting its own development and training strategy.
This new credit facility followed the signing of a Memorandum of Understanding between the French Development Agency (AFD) and the West African Development Bank (BOAD) in September 2016, in the presence of Mr. Michel Sapin, Minister of Economy and Finance of the French Republic. AFD Director-General, Mr. Rémy Rioux and BOAD President, Mr. Christian Adovelande, gathered in Paris on the occasion of the 75th anniversary of AFD to sign this €100 million facility agreement.
The result of more than 40 years of cooperation
AFD and BOAD have maintained for more than forty years a historic, multifaceted and innovative partnership in financial, technical and capacity building areas.
In addition to its loans, AFD has provided multidimensional support to BOAD, mostly in the form of grants devoted to financing technical assistance. These grants made it possible for BOAD to advance in several areas such as anti-money laundering procedures, environmental and social policy, strengthening of its structuring role in the regional capital market, capacity building for its staffs in charge public project financing and financing of studies.
A partnership agreement was signed in March 2014 between BOAD and AFD in order to strengthen the strategic and operational partnership between the two institutions through consultation on issues of common interest, in-depth sectoral dialogue and common achievements.
In 2016, WAEMU institutions took measures geared towards strengthening BOAD Development and Cohesion Fund (FDC) window, particularly through the inception of an interest subsidy mechanism at community level as decided by the WAEMU Council of Ministers on 17 December 2015. This new €100 million facility agreement entered into at year end is timely and will contribute to the resumption of concessional activity for the benefit of WAEMU member countries.
Public financial institution, the Agence Française de Développement (AFD) has been actively combating poverty and promoting sustainable development in Southern and overseas countries for 75 years now.
Present over four continents through a network of 75 offices, AFD finances and supports projects aimed at improving the living conditions of the populations, contributing to economic growth and protecting the planet: schooling, maternal health, support to farmers and small enterprises, water supply, sanitation, energy, combating global warming…
In 2015, AFD devoted about €8.3 billion to project financing in developing and overseas countries. Its actions have concrete effects. Between 2013 and 2015, ongoing projects have contributed to:
- schooling of 2.6 million children at primary and secondary levels;
- improved housing for 2.6 million people;
- providing access for 3.8 million people to sustainable source of drinking water;
- supporting the development of 150,000 small enterprises;
- supporting 710,000 family farms;
- preserving and managing on a sustainable basis 34 million hectares of natural areas for biodiversity protection.Over recent years, AFD-supported operations in Togo focused on three priority sectors: infrastructure (urban equipment, drinking water and sanitation); support to social sectors (education and vocational training, health) and support to productive sector through the financial sector).
- For more information, please visit www.afd.fr.
- Total credit facilities extended by AFD to Togo over the 2007-2015 period amounted to €385 million including €126 million to regional banks.
BOAD is a common development finance institution of the member countries of the West African Economic and Monetary Union (WAEMU), whose purpose is to promote the balanced development of its member countries (Benin, Burkina Faso, Côte d’Ivoire, Guinea Bissau, Mali, Niger, Senegal and Togo) and foster economic integration within West Africa.
The Bank provides long, medium and short-term direct loans, refinancing facilities to local banks to support small and medium-sized enterprises, funding for project feasibility or engineering studies, guarantees for bond loans. To meet market requirements and better support member countries and the private sector of the Union, BOAD has explored other areas and positioned itself for short-term operations, assistance, financial advisory services, financing arrangements and financing of projects eligible under the Clean Development Mechanism (CDM).
To finance its activities, BOAD has at disposal not only a partnership network comprising foreign donors, European and Asian countries, but also an annual programme for bond loan issues. Its share capital increased from XOF350 billion in 2000 to XOF1,155 billion in 2015 and equity from XOF82 billion to XOF618.7 billion over the same period. Equipped with its experience gained from the regional capital market, BOAD has now an international credit rating which enables it, on a complementary basis, to access and raise resources in the international capital market. These various interventions reflect BOAD’s commitment to adapt to its environment and maintain close collaboration with the populations of the WAEMU region in order to overcome the very many development challenges at sub-regional level.
The amount of approved loans stands at XOF522,3 million for 2016. BOAD’s total commitments since commencement of operations in 1976 amount to XOF4,340.1 billion for 1,036 operations.
For more information, please visit www.boad.org